GMI: 5; GMI-R: 60%; QQQQ breakdown coming?

@ 12:01 am

Well, the split market we have been talking about may be about to end–but not yet.  The GMI is still 5 but the GMI-R is at 60%.  Gmi1107 The QQQQ is right on support and another decline could turn my indicators negative.  Tuesday was the 49th day of the current QQQQ up-trend.   The QQQQ has closed the past 10 weeks above its critical 10 week average, but the SPY is now below its 10 week average.  Only 13% of my 16 short term indicators for the QQQQ, SPY, DIA and IJR are positive.  The Worden T2108 indicator is now down to 31%, in bear territory for NYSE stocks.

So, what to do?  I took some funds off the table today.  Why try to be a hero when so many of the banks and large financial stocks and the dollar are in trouble? Look for a put/call ratio (1.03 Wednesday in IBD) well above 1.0 for a short term bounce.

GMI:4; GMI-R: 6; Strongest stocks

@ 12:01 am

The GMI fell one, to 4 and the GMI-R to 60%.  There were 101 new highs and 381 new lows in my universe of 4,000 stocks on Monday.  The QQQQ continues to resist the down-trend in the non-tech markets.  Silver, gold and commodities are hitting the new high list. The QQQQ is in its 47th day of its short term up-trend.  You can cut the negativity espoused by CNBC pundits with a knife, and yet the markets rebounded from their lows on Monday.  This market therefore looks like it wants to rally.  Key growth stocks (GOOG, AAPL, CMG, RIMM, BIDU) are holding up.  On the other hand, the Worden T2108 indicator is now at 36%, reflecting a lower market for NYSE stocks.  Among the 101 stocks in my stock universe that hit a new high on Monday and that have recent quarterly earnings increase of 100% or more are:  ENZN,NDAQ,HAE,RIG,PSEM,HL,VCP,BIDU,FLS,CELL,ATRO,

ANSS,NEM,RIMM,ITC FMCN.  If the market does rally, these stocks may be among the new leaders.

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GMI: 5;GMI-R: 7; Split market continues

@ 9:06 pm

The GMI fell to 5, and the GMI-R is now at 70%. There were 351 new lows and 133 new highs in my universe of 4,000 stocks on Friday.  Meanwhile, the Daily SPY Index has turned negative even as the QQQQ remains in the 46th day of its current short term up-trend.  10% of the Nasdaq 100 stocks rose, somewhat better than the 3% of the S&P 500 and the Dow 30 stocks. But the Worden T2108 indicator is now 42%, the lowest level since it topped at 82% on October 5th. This pendulum of the NYSE stocks is now heading towards bearish territory and does not typically bottom out until it declines to below 25%.  Nine stocks from the IBD 100 list published on October 15 hit new highs on Friday:  FMCN,BIDU,CTRP,CLB,ABB,TEF,HDB,HMSY,SYNA. But when I look at the industries represented in the new low list, I am struck by the major weakness in housing, bank and apparel stocks. How long can the techs buck these trends? I am still holding QLD, but will sell out if the GMI falls below 3.